NETHERLANDS - ABP's recovery plan risks job losses and will cost the Dutch government over €500m (US$662m) a year, the ministry of home affairs and kingdom relations has warned.
The Dutch Ministry of Home Affairs warned extra employer contributions would cost the state over €500m a year and would put jobs at risk unless an alternative solution could be found.
Speaking to Global Pensions, a spokesman for the ministry said: "If no other solution is found then the government will have to find this amount of money [through cuts]. There is a risk of job losses."
Although the ministry could not give a specific figure on how many job may be put at risk through the recovery plan, the spokesman said there were no other viable plans on the table as yet.
A ministerial debate on the recovery plan is expected within the next few days, he added.
In a statement to Global Pensions, ABP said: "The ABP Board of Governors is responsible for the financial position of the pension fund. On the basis of the current financial position, and the legal requirements imposed on it by the Dutch supervisory authority, the Board has to deploy a set of measures.
Figures released by the Netherlands Bureau for Economic Policy Analysis (CPB) have shown the country to be in the grip of a very deep recession, with the economy expected to contract by 3.5% in 2009 and by 0.25% in 2010.
The country's budget will fall from a surplus of 1% to a deficit of 2.8% of GDP in 2009, growing to 5.6% next year, largely due to rising unemployment benefits and falling tax and social security revenues.
The CPB also said unemployment would rise to 5.5% in 2009 and 8.75%, compared to 4.0% in 2008.
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